Many Empire Electric Association Inc. members have something to look forward to on their August bills. EEA’s financial performance once again makes it possible to make a general refund of capital credits and the cooperative’s Board of Directors voted to refund an estimated $1,009,709.86 in patronage capital.
The 28,858 refunds for current and former members will vary in amounts and correspond to the amount of money each member paid for electricity. The electricity payment made by members above the cost of providing electric service is placed into a patronage capital account in each member’s name in proportion to the member’s contribution to the cooperative’s margins. This capital, along with borrowed funds, can be used to finance improvements such as replacement and/or upgrades of electrical lines, poles, transformers and substations.
Patronage capital refunds are the method electric cooperatives use to return margins to members. These refunds differentiate cooperatives from other types of utilities who pay dividends to investors instead of members.
The cooperative invests the margins contributed by each member-owner back into EEA’s system. The margins build members’ equity to reduce the amount of money the cooperative has to borrow. This allows the cooperative to maintain system reliability at the highest level and helps keep rates reasonable.
EEA members can choose how to receive their capital credit refund. They have the choice of donating to local organizations, receiving a credit on their bill, or being mailed a check. The selections can be changed at any time the member chooses. Active members receive a credit on their bill unless they chose a different option.
Capital credits are issued in the name of the person or business listed on the account. In some instances the person is deceased or has moved without leaving a forwarding address. In those circumstances, call Empire for information about how capital credits may be disbursed.
For more information, capital credit refund, please call the main office at 970-565-4444 or long distance at 800-709-3726.
